Measuring Absolute Income Mobility: Lessons from North America and Europe

Author:

Manduca Robert1,Hell Maximilian2,Adermon Adrian3,Blanden Jo4,Bratberg Espen5,Gielen Anne C.6,van Kippersluis Hans6,Lee Keunbok7,Machin Stephen8,Munk Martin D.9,Nybom Martin3,Ostrovsky Yuri10,Rahman Sumaiya11,Sirniö Outi12

Affiliation:

1. Department of Sociology, University of Michigan (email: )

2. Department of Sociology, Stanford University (email: )

3. Institute for Evaluation of Labor Market and Education Policy (email: )

4. School of Economics, University of Surrey (email: )

5. Department of Economics, University of Bergen (email: )

6. Erasmus School of Economics (email: )

7. Department of Health, Society, and Behavior, University of California, Irvine (email: )

8. Department of Economics, London School of Economics (email: )

9. The Physician Think Tank ATLAS, Copenhagen, and SEC, Uppsala University (email: )

10. Statistics Canada (email: )

11. Frontier Economics (email: )

12. Finnish Institute for Health and Welfare (email: )

Abstract

We use linked parent–child administrative data for five countries in North America and Europe, as well as detailed survey data for two more, to investigate methodological challenges in the estimation of absolute income mobility. We show that the commonly used “copula and marginals” approximation methods perform well across countries in our sample, and the greatest challenges to their accuracy stem not from assumptions about relative mobility rates over time but from the use of nonrepresentative marginal income distributions. We also provide a multicountry analysis of sensitivity to specification decisions related to age of income measurement, income concept, family structure, and price index. (JEL D31, G51, I31, J12, J31, J62)

Publisher

American Economic Association

Cited by 3 articles. 订阅此论文施引文献 订阅此论文施引文献,注册后可以免费订阅5篇论文的施引文献,订阅后可以查看论文全部施引文献

1. An Extended Family Perspective on Intergenerational Human Capital Transmission in China;Social Indicators Research;2024-09-06

2. Absolute income mobility obscures marginalized children’s disadvantages;Proceedings of the National Academy of Sciences;2024-06-11

3. Measuring Absolute Income Mobility: Lessons from North America and Europe;American Economic Journal: Applied Economics;2024-04-01

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